SAAB

Redesigning and implementing the management control model.

Challenge.

Electronic Defense Systems (EDS), one of five business areas in the Saab Group, needed to improve its financial reporting and analysis in order to create a more proactive and business-supportive controlling process as well as to increase efficiency through shorter lead times. To achieve this, EDS faced a number of key issues: too much time was spent on collecting data, reconciling information and creating reports. This, in turn, left little time to analyze, adjust and approve the financial output before reporting to the Saab Group.To meet the challenges, Capacent and EDS together identified the project scope to minimize the amount of manual workload in data collection and financial reporting. In doing so, we reduced the lead time in monthly reporting routines and freed up time for more value-added activities.

What we did.

The project was carried out using our proven methodology for implementing best-practice performance management processes. These consist of three main phases (Analysis, Design and Implementation), where we were involved from start to finish.

Analysis began with a study (interviews, workshops and analysis of existing material) of the current situation in terms of organization, processes and reports. Next, a design of the future information flow was agreed upon. The Design phase resulted in the creation of a model that combines relevant financial and operational information, which accurately reflected EDS’s business model and reporting needs. Workshops and interviews provided a foundation for gathering, structuring and analyzing information, as well as defining and anchoring the need for change. In the Implementation phase, the client was highly involved, as Saab needed to gain a complete understanding to secure future maintenance and development of the model.

Results.

Saab EDS now enjoys a 20%-30% increase in available working hours and has substantially reduced the lead time in its monthly reporting process. This has enabled Saab EDS to improve its operational reporting and analysis on account of a more proactive and analysis-driven control process.

The possibility to “slice and dice” information has enabled Saab EDS to identify and explain deviations at an early stage. The possibility to gain faster insights has led to greater confidence and control and has reduced the time for producing the comments included in the reporting packages.

Do you want to know more?

Please contact Erik Pettersson

Telephone: +46 70 558 5380

E-mail: erik.pettersson@capacent.se